European Data Centres Set For Impressive Growth

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The data centre sector will grow another 28 percent, according to a report from Tariff Consultancy

Over the next five years the data centre sector will grow dramatically, according to a new report from Tariff Consultancy Ltd (TCL), which found that raised floor space will increase by 28 percent on average.

The report also predicted that data centre revenue across Europe will increase by 53 percent over the 5 year period to the end of 2016.

The Tarrif research, “Data Centre Pricing in Europe 2011”, looked at the key data centre markets in 23 European countries. It analysed key data centre players, raised floor space, rack space rental, revenue per square metre and data centre revenues.

Industry Trends

The report also pinpointed some of the key trends that are impacting the data centre industry in Europe. It found for example that new data centre raised floor space is being added at a rate of 15,000 square metres per month.

However, it also discovered that as new data centre resource comes online, it impacts data centre utilisation rates, which are set to fluctuate. This is because the introduction of new space effectively lowers average rates in the short term, but this will increase over time

Data Centre pricing is now increasingly based on power, and this pricing is also increasing over time. The report predicted a 16 percent increase in average rack space pricing over the 5 year period to the end of 2016, and revenue per square metre is set to increase by 22 percent over the same period.

The report also highlighted that data centre expansion in Europe remains focused on the established markets, including the UK, France, Germany, the Netherlands, Sweden and Switzerland. That said, the report predicted that emerging data centre markets such as Hungary, Slovakia and Slovenia, will see faster overall revenue and pricing growth, although they are starting from a low base.

“The data centre market throughout Europe is undergoing steady and continuous growth,” said Margrit Sessions, MD of TCL. “The UK, Germany and France remain the largest markets in Europe, with data centres being expanded to cater for new high density applications with increased power.”

UK Position

“Pricing is a key component for the data centre operator to differentiate and to attract new customers,” she added. “In the short term, data centres established outside of the city centre have to discount their services when compared with the data centre located in the city centre.”

Last September, TCL also found that that London remains the largest single data centre market in Europe, despite issues concerning the availability of appropriate power supplies within the M25, and the fact that campuses outside the capital may overtake London in terms of total space.

However this postive note was offset when analysts at Quocirca warned in May that UK data centres must improve if the country is to remain a financial powerhouse. It found that the majority of organisations are having trouble ensuring that existing data centre facilities meet the changing needs of their businesses, but this is less the case in countries such as Germany and Switzerland.

The research comes at a time when arguments within the sector continue about the best data centre model going forward, with competition from the likes of the Green Grid as well as the EU Code of Conduct for data centres.

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Author: Tom Jowitt
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